Expert: Chris Ebert - 2/28/2011

Question
I have read many Q&A's over 1099-c but have not found info that I need for my particular question so I hope you can help.
We had a vehicle repo'ed in July 2007.  We have never received anything from the Credit Union showing how much the vehicle sold for at auction, so we don't know what the difference is between what it sold for and what we owe on the balance.  We do know what we owed on it when we turned it in and that is what is showing on the B.B.C. that they sent us for 2010 tax year.  They are saying that the vehicle was not sold until 2010 and we know better because we actually saw the vehicle shortly after it was repo'ed.  My question is wouldn't the Credit Union be responsible for sending us something showing the difference in what was owed and what it sold for and can they actually report the entire balance (prior to auction)to the IRS on the 1099-C?  Also is there a time frame in which they have to report it to the IRS?

Answer
Cindy,

This is our article and it may assist you:
http://www.henleycreditlaw.com/2009/08/1099-c-cancellation-of-debts/

1) They can only 1009-C you for the principal only and minus what they sold the car for.
2) Ask for a copy of the sheet that details all the fees and transactions that took place concerning the repo. Every institution I have worked with can provide this to me.

Chris Ebert
http://www.henleycreditlaw.com